As crypto trading volumes continue to decline, stablecoin activity is surging, signaling a potential market shift. On March 12, blockchain analytics firm Santiment reported a sharp rise in Tether (USDT) transfers, with over 143,000 wallets moving USDT—the highest activity in six months. Historically, such spikes in stablecoin movement have preceded bullish market trends, as traders prepare funds for future investments.
Despite the rising stablecoin activity, overall crypto trading volume has dropped since its February 27 peak, reflecting caution and uncertainty in the market. On March 12th, Santiment reported a surge in Tether (USDT) transactions. Over 143,000 wallets transferred USDT. This activity was indicated to have the highest activity in six months.
In Sep 2024, a similar pattern was recorded when Bitcoin traded above $60K and almost 54K new USDT wallets were created. In less than 2 months later, BTC surged past $90K by November as altcoins also followed suit. Such an increase in stablecoin activity often precedes market's buying pressure.
Despite seeing an increase in stablecoin transactions, crypto trading volume has dropped. Santiment reported that trading volume peaked on Feb 27th but since then, it has been dropping. To counter this drop, traders should remain cautious and avoid aggressive market entries.
Tether continues to mint new stablecoins after sometime. Just recently, in March 2nd, tether added more fresh liquidity into the market by issuing 1 billion USDT. After a short while, Bitcoin surged and traded above $94K but failed to sustain the bullish momentum due to weak buying pressure and momentum. The price retraced quickly from concerns about declining trading activity.
Some analysts however believe macroeconomic factors and related news could influence market trends. One expert pointed to a U.S. bill proposing a national Bitcoin reserve as a potential catalyst. Others suggest that regulatory developments, such as Ripple’s growing approvals, could impact the market.
Data also shows that the number of USDT holders has increased. At the start of 2025, there were 6.53 million holders. This number has now risen to 7.06 million. Also, the 90-day Mean.
The Dollar Invested Age (MDIA) for USDT is declining. This indicates that traders are deploying stablecoins rather than holding them.
If this trend continues, trading volume could rise, strengthening buying pressure. However, if market participants remain cautious, prices may stay in a consolidation phase despite stablecoin activity.